Since it isn't apparently all that difficult to have a private server for such activity, why run the risk of it on a public server? If you are into orc-elf erotic situations, then take it out of the public eye. Start your own server and do your business there instead of possibly letting someone who wants nothing to do with what you are up to be subjected to your private activities.
If kids come across a bunch of other players standing around in their underwear, they are going to be curious about what everyone is doing. If no one is talking openly, the kid is just going to guess that people are just screwing off and he might join in, thinking it is funny for a bunch of people to be standing around in their underwear and take his off, only to get a private tell from someone trying to come on to him. So this is acceptable behavior because the kid should have known better?
If you want to act out something that isn't intended within the game, don't do it in public, regardless of whether you are trying to do it privately. People will screw up at some point and accidentally let their conversation run over into public space, and no one should be subject to that. There are plenty of other games to play if you just want to talk dirty with other people, don't do that crap in a place where there are other players of different ages that could become affected by that behavior.